Those who are going to be moving here, and living in London for a few years, may want to consider buying a property in one of the many wonderful neighborhoods instead of renting an apartment which will not give any return on investment. The property market in England as well as learning all of the neighborhoods is complicated, so those moving here may want to learn the way things work and consult with a relocation agent before buying a home.
Before touring neighborhoods in search of the perfect home those considering buying a property should arrange their finances. Most people will apply to a bank or financial institution before they start looking in London neighborhoods so they have a good idea as to how much they can spend. If they are approved for a mortgage they will receive a legal document provided by the bank and is known as an ‘in-principle mortgage agreement’. This is the exact same as a pre-approval letter in the United States. Having this document in hand does give one an advantage when making an offer on a home because they seller will be aware that the potential buyer is able to get financing quickly.
It is very important for all Americans moving here to realize there are also extra costs involved in buying a home in London, such as stamp duty tax and conveyancing fees. These can reach thousands of pounds so those new to the British housing market should make sure they have extra money available to cover all of the taxes and duties that are required by English law.
It is enticing to begin touring London neighborhoods in search of the ‘perfect house’ before stepping foot inside a financial institution assuming getting a mortgage will be a piece of cake. Anytime one moves to a new country there are several more hurdles they must clear when dealing with finances than in their home country. Even though it may be hard it would be best for anyone planning on buying a home in London to reserve the London neighborhoods touring until after receiving their in-principle mortgage agreement.